Public Schools of North Carolina State Board of Education Department of Public Instruction Report to the North Carolina General Assembly Charter Schools Annual Report S.L. 2013-335; S.L. 2014-115 Date Due: February 15, 2018 Report # 46 DPI Chronological Schedule, 2016-2017
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Report to the North Carolina General Assembly...Feb 15, 2018 · State Board of Education Department of Public Instruction Report to the North Carolina General Assembly Charter Schools
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Public Schools of North Carolina
State Board of Education
Department of Public Instruction
Report to the North Carolina
General Assembly
Charter Schools Annual Report
S.L. 2013-335; S.L. 2014-115
Date Due: February 15, 2018 Report # 46 DPI Chronological Schedule, 2016-2017
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STATE BOARD OF EDUCATION SBE VISION: Every public school student will graduate ready for post-secondary education and work, prepared to
be a globally engaged and productive citizen.
SBE MISSION: The State Board of Education will use its constitutional authority to lead and uphold the system of
public education in North Carolina.
WILLIAM COBEY
Chair :: Chapel Hill – At-Large
A.L. COLLINS
Vice Chair :: Kernersville – Piedmont Triad Region
DAN FOREST
Lieutenant Governor :: Raleigh – Ex Officio
DALE FOLWELL
State Treasurer :: Raleigh – Ex Officio
MARK JOHNSON
Secretary to the Board :: Raleigh
BECKY TAYLOR
Greenville – Northeast Region
REGINALD KENAN
Rose Hill – Southeast Region
AMY WHITE
Garner – North Central Region
OLIVIA OXENDINE
Lumberton – Sandhills Region
GREG ALCORN
Salisbury – Southwest Region
TODD CHASTEEN
Blowing Rock – Northwest Region
WAYNE MCDEVITT
Asheville – Western Region
ERIC DAVIS
Charlotte – At-Large
PATRICIA N. WILLOUGHBY
Raleigh – At-Large
NC DEPARTMENT OF PUBLIC INSTRUCTION Mark Johnson, State Superintendent :: 301 N. Wilmington Street :: Raleigh, North Carolina 27601-2825 In compliance with federal law, the NC Department of Public Instruction administers all state-operated educational programs,
employment activities and admissions without discrimination because of race, religion, national or ethnic origin, color, age, military
service, disability, or gender, except where exemption is appropriate and allowed by law.
Inquiries or complaints regarding discrimination issues should be directed to: Maria Pitre-Martin, Ph.D., Deputy State Superintendent :: 6307 Mail Service Center, Raleigh, NC 27699-6307 Phone: (919) 807-3759 :: Fax: (919) 807-4065
Visit us on the Web :: www.ncpublicschools.org M0517
LEGISLATION AND HISTORICAL BACKGROUND .......................................................................... 6
CURRENT STATE OF CHARTER SCHOOLS IN NC .......................................................................... 8 School & Student Population ........................................................................................................................... 8
Schools................................................................................................................................................................................ 8 Students .............................................................................................................................................................................. 8
Admissions and Student Demographics ........................................................................................................ 9 Demographics: Race, Ethnicity, Sex ..................................................................................................................... 11 Demographics: Socioeconomic Status ................................................................................................................. 12 Demographics: Exceptional Children .................................................................................................................. 13
Charter Schools Operating Requirements ................................................................................................. 14 Charter Schools Performance........................................................................................................................ 15
Academic Performance: School Performance Grades ................................................................................... 15 Academic Performance: Performance by Subgroup ...................................................................................... 18 Academic Performance: Relative to State Board of Education Goals ..................................................... 26 Academic Performance: Low-Performing and Continually Low-Performing Schools ..................... 27 Charter School Closure ............................................................................................................................................. 28
IMPACT OF CHARTER SCHOOLS ON THE PUBLIC SCHOOL SYSTEM .................................. 29 Historical Overall Fiscal Impact ................................................................................................................... 29 Current School Year (2017-2018) Specific Fiscal Impact ....................................................................... 29 Other Considerations: Other Fiscal and Non-Fiscal Impact ................................................................. 30
BEST PRACTICES RESULTING FROM CHARTER SCHOOL OPERATIONS ........................... 31 High Academic Growth with Disadvantaged Student Population ....................................................... 31 Charter Schools Receiving Special Awards and Recognition ................................................................ 33
OTHER INFORMATION ...................................................................................................................... 33 NCDPI Support of Charter Schools ............................................................................................................. 33 Update on Legislation Affecting Charter Schools .................................................................................... 37 Update on 2017 Charter Renewals ............................................................................................................... 38 Update on 2016 Charter Applications ......................................................................................................... 38 Updates on 2017 Charter Applications........................................................................................................ 39 Charter School Teacher Absentee Rates ..................................................................................................... 40
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EXECUTIVE SUMMARY
Since the first charter school was opened in North Carolina in 1997, the state has implemented a
number of rules and regulations to ensure that charter schools were serving all students well. One
such regulation was the requirement that the State Board provide an annual reporting of charter
school performance, impact on traditional public schools, best practices, etc. The current year
report describes the state of North Carolina’s charter schools, and provides a more in-depth
reporting of academic performance than in years past. OCS and the State Board of Education
intend to continue in-depth investigation of charter school performance in future annual reports.
The State Board is pleased to report that, overall, charter schools are becoming more racially
diverse, and the overall percentage of economically disadvantaged students enrolling in charter
schools has increased from the previous year. In addition, the percentage of charter schools earning
Ds or Fs has decreased over the past four years. With continued monitoring and oversight, and
strong authorization processes, OCS is confident that the strength of the charter sector will
continue to grow. To that end, the Charter Schools Advisory Board has implemented a number of
measures to increase transparency and rigor in the charter school application process. These
changes, and others, are discussed in greater detail in the body of the report.
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LEGISLATION AND HISTORICAL BACKGROUND
In 1996, the North Carolina General Assembly passed the Charter School Act, thereby
authorizing the establishment of “a system of charter schools to provide opportunities for
teachers, parents, pupils, and the community to create and sustain schools that operated
independently of existing schools, as a method to accomplish all the following:
1. Improve student learning;
2. Increase learning opportunities for all students, with special emphasis on expanded
learning experiences for students who are identified as at risk of academic failure or
academically gifted;
3. Encourage the use of different and innovative teaching methods;
4. Create new professional opportunities for teachers, including the opportunities to be
responsible for the learning at the school site;
5. Provide parents and students with expanded choices in the types of educational
opportunities that are available within the public-school system;
6. Hold the schools established under this Part accountable for meeting measurable
student achievement results, and provide the schools with a method to change from
rule-based to performance-based accountability systems.
Codified in NC General Statute as Article 14A of Chapter 115C (115C-218, et al.), the charter
schools law assigns the State Board of Education the sole authority to grant approval of
applications for charters.
Statute originally capped at 100 the number of charter schools that could operate in the State in
each school year, but the General Assembly removed that ceiling in August 2011. Thirty-four
charter schools opened in the inaugural year of 1997. There are 173 charter schools operating in
the 2017-18 school year, including 20 of the original 34 schools. Since 1997, 44 schools that have
been open at some time have closed.
Current statute sets the parameters for how the system of charter schools must operate. The law
includes the following sections:
• Purpose of charter schools; establishment of North Carolina Charter Schools Advisory
Board and North Carolina Office of Charter Schools
• Eligible applicants, contents of applications; submission of applications for approval
• Final approval of applications for charter schools
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• Charter school exemptions
• Charter school operation
• General requirements
• Accountability; reporting requirements to the State Board of Education
• Charter School Facilities
• Charter School Transportation
• Admission Requirements
• Employment Requirements
• Funding for charters
• Causes for nonrenewal or termination; disputes
Finally, G.S. 115C-218.110 directs that the State Board “shall report annually no later than January
15 to the Joint Legislative Education Oversight Committee on the following:
1) The current and projected impact of charter schools on the delivery of services by the
public schools.
2) Student academic progress in the charter schools as measured, where available, against the
academic year immediately preceding the first academic year of the charter schools'
operation.
3) Best practices resulting from charter school operations.
4) Other information the State Board considers appropriate.
This report addresses this legislated reporting requirement.
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CURRENT STATE OF CHARTER SCHOOLS IN NC
School & Student Population
Schools
Between 1997 and 2011, the number of charter schools in NC first grew rapidly, then slowly, but
steadily until it reached the legislative maximum of 100 schools. Since the restriction on the
number of charter schools allowed was lifted in 2011, 367 applicants have submitted complete
applications for charters, and the State Board has approved 110.
Over the past several years, the Charter Schools Advisory Board and the Office of Charter Schools
have implemented many processes through which to provide additional supports for charter
applicants. This includes an initial review of applications for completeness by OCS, and
notification for any applicants whose applications have been deemed incomplete. These applicant
groups are then given five business days to make necessary additions prior to being forwarded to
external reviewers. Previously, incomplete applications were automatically disqualified from
consideration for the current application cycle.
In 2016-17, the CSAB made additional significant changes to the application review process to
increase transparency and rigor in recommending applicants for State Board approval. An
additional opportunity for in-person clarification was established for applicants, thereby removing
the unwelcome burden of responding in writing to external reviewers. In addition, initial
application reviews were divided into two committees to allow CSAB members to focus deeply on
a subset of applications during the first review.
In 2016, 38 applications were submitted to open schools in 2018-2019. Of those, 15 were approved
by the State Board. Pending completion of a successful planning year, these schools will open in
2018-19.
In the most recent application cycle, 29 nonprofit boards submitted complete applications. Of those
29, twenty were applications for schools to open in 2019-2020, five were for Acceleration and one
for Fast Track Replication (to open in 2018), three were new or repeat applicants requesting an
accelerated open, and two were conversion applicants requesting an accelerated open. These
applications are currently under review.
173 charter schools are operating in 2017-18.
Students
The charter schools’ student population has grown steadily since 1997, with larger annual
increases occurring in the years since the cap on schools was lifted in 2011. The graph below
illustrates the increase in allotted charter school student enrollments from 1997 to 2017. According
to second month Average Daily Membership (ADM) figures certified in December 2017, 100,508
students are now being served by charter schools. This represents 6.56% of the total public-school
population (1,533,180).
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Figure 1. Allotted Average Daily Membership 1997 – 2017
Data Source: Highlights of the North Carolina Public School Budget, February 2017, Information
Analysis, Division of School Business, North Carolina Department of Public Instruction
In addition to current charter schools’ student population, many students have applied to enroll in
charter schools, but have not be able to enroll due to limited space. The NCDPI Office of Charter
Schools surveys charter schools annually to gather data regarding the number of students on
“waitlists” statewide. In the 2017 survey (closed December 2017), 134 charter schools (77.5% of
the 173 schools in operation) responded and indicated that a total of 55,165 students are on
waitlists. This figure reflects a point in time (waitlists could change daily), and cannot be verified
as an unduplicated count of students (as a student could be on multiple school waitlists), but is the
best information available regarding the number of students who have indicated interest in
attending charter schools but are not currently enrolled.
Admissions and Student Demographics
Background
NC’s charter schools are not subject to school district geographic restrictions and often have
student populations drawn from multiple local school districts. Charter schools are directed in G.S.
115C-218.45(e) to “make efforts [to have] the population of the school reasonably reflect the racial
and ethnic composition of the general population residing within the local school administrative
unit in which the [charter] school is located or the racial and ethnic composition of the specific
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population that the school seeks to serve residing within the local school administrative unit in
which the [charter] school is located.” There is no mechanism by which schools can guarantee
racial and ethnic balance, however, nor is there an official consequence for not achieving it.
Charter schools may target certain students through admissions set-asides, if the student population
being given priority for admission is identified as such through the school’s State Board-approved
mission and admissions process. As of this writing, four charter schools have received approval to
institute weighted lotteries to work towards a more diverse student body:
• Central Park School for Children, located in Durham County;
o 2014-15: 15.2% ED
o 2015-16: 15.83% ED
o 2016-17: 22.11% ED
o 2017-18: 23.4% ED
• Community School of Davidson, located in Mecklenburg County;
o 2017-18: <5% ED
• GLOW Academy, located in New Hanover County; and
o 2017-18: 71% ED
• Charlotte Lab School, located in Mecklenburg County
o 2017-18: 6.6% ED
The ability to conduct a weighted lottery was codified in the 2015 long session in HB 334 and
provides for charter schools to have additional controls to enroll underserved populations if
supported by the school’s mission.
Charter schools may not discriminate in their admissions process based on race, creed, national
origin, religion, or ancestry. Charter schools may target certain students through their marketing,
but “any child who is qualified under the laws of [NC] for admission to a public school is qualified
for admission to a charter school.” General Statute does offer a provision for single-gender
schools. The Girls Leadership Academy of Wilmington (GLOW), approved for operation
beginning in 2016, was the first single-gender charter school.
Each charter school has an authorized maximum funded enrollment. If a school receives more
applications from qualified applicants than there are funded slots at the school, the school must
conduct a lottery and establish a waitlist. Students who are not enrolled through the lottery must re-
apply for admission each year. Students who are enrolled do not need to re-apply and may retain
enrollment in subsequent years.
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Demographics: Race, Ethnicity, Sex
Based on data from 2016-17, overall student populations in the NC charter schools and traditional
public schools remain largely like trends established in the past several years. In terms of overall
percentages, charter school demographics largely mirror those of traditional public-school districts.
As has been reported in previous annual reports, there remains a larger discrepancy between the
percentage of White and Hispanic students in charter and traditional public schools. The
percentage of male and female students enrolled in charter schools is quite similar to the
percentage enrolled in traditional public schools.
In 2016, a task force was created by Lieutenant Governor Dan Forest to examine charter school
outreach to Hispanic families. A poll of several hundred Hispanic parents across the state found
that only 12% knew what a charter school was or were aware that they existed, and only 5% had
attempted to enroll their student in a charter school. The task force concluded that this is not an
issue unique to North Carolina, and suggested that charter school officials consult with states such
as Florida- who have larger enrollments of Hispanic students- for solutions. The task force also
found that many charter schools do not have applications in Spanish, and there exists no English to
Spanish translation for the term “charter school.” To increase Hispanic participation, charter
schools should be referred to as “public charter schools.” The percentage of Hispanic students
served by charter schools in 2016-17 increased .8% from the previous year, and the percentage of
White students served by charter schools decreased by 1.3%.
Figure 2. Overall Traditional Public Schools and Charter Schools Racial Demographics
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
AmericanIndian
Asian Hispanic Black White Two orMore Races
PacificIslander
1.3%3.2%
17.3%
25.5%
48.6%
4%0.1%0.7%
3.5%
9.2%
26.2%
55.8%
4.5%0.2%
Traditional Public Schools Charter Schools
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Figure 3. Overall Traditional Public Schools and Charter Schools Sex Demographics
Source: 2016-17 Grade, Race, Sex Report http://www.dpi.state.nc.us/fbs/resources/data/
Demographics: Socioeconomic Status
In previous years, ED student data was self-reported by charter schools and concerns regarding the
accuracy of the data arose. To mitigate these concerns, improvements to the data collection process
were implemented, and ED student data for the 2017-18 school year was compiled via
collaboration between the National School Lunch Program and the Direct Certification System.
Overall, NC’s charter schools and traditional public schools differ in terms of the percentage of
Economically Disadvantaged (ED) students (e.g., students from families with lower income) they
serve. As illustrated in the chart below, the percentage of ED students in traditional public schools
and charter schools has fluctuated over the past three years, but the overall percentage of ED
students in charter schools in 2016-17 increased 1% from the previous year. The percentage of ED
students in charter schools was approximately 19.8% lower than in traditional schools.
Figure 4. Percentage of Overall Student Population that is Economically Disadvantaged